What Price Should I Ask For My Home

What Price Should I Ask For My Home

One of the most difficult things when preparing to sell your home is setting the correct asking price. Most folks have an idea of a price they want to get but this is not always based in fact. First of all, what you owe on your house or how much money you need from the sale of your house will not dictate market value at all. In fact, Market Value is an elusive term in itself. It is the perception of value between a buyer and a seller. It is also independently determined by external professional appraisers who determine value only on objective items like square footage and amount of bedrooms and baths. To add to the confusion there is also the term assessed value, the value that a municipality assigns to a property to determine taxes. When preparing to sell your home, it is important to consider all of these factors. Your property should have a correct assessed value. If the property assessment is too high, it should be grieved to reduce the tax burden. Taxes affect the perception of value on the part of a buyer. The higher the taxes the less money a buyer can qualify for in mortgage money for your property. Appraised value is the amount that a bank determines through an independent appraisal that is will use to decide a loan on a house. There are times when a buyer who believes themselves to be qualified will be unable to proceed with a transaction because they home does not appraise to a value to support the purchase price and the mortgage amount necessary. There are times that a perceived value by buyer and seller are not supported by appraised value. The sale then can only be completed by a buyer with enough cash to pay an additional down payment to comfort the bank or to pay cash for the property which reduces your buyer pool. When selling your home, you want to attract the largest pool of buyers possible. This will result in the most showings and therefor the most offers. Price it too high and your pool of buyers is reduced. People often shop the internet for homes and while their focus is finding a home, they are looking to eliminate homes from viewing. If they think the home is priced too highly they will not make an appointment to view the property and this will reduce the pool of buyers and thereby the offers on the property. You interview numerous realtors to list your house and they all have different numbers. Some are high and some are low. Some tell you they have buyers lined up already. How to choose and whom to believe. The fact is you can only sell your home for what someone is willing to pay. You have to look at your competition and see what is active and what has sold. You have to try to see your home how a buyer might. The supply of houses is also a factor. The more houses to choose from the more selection for the buyer, the softer the price will be. Realtors should be able to show you the properties that they used to determine the price they have given you, the comps (comparables). The properties should be like yours in square footage, location and other amenities. Price too high, you will not get showings: few showings=less buyer pool= less offers. Price low, you will have many showings. If there are no offers despite multiple showings, something is wrong with the house or the price. People are looking at it and not perceiving the value. The longer the house is on the market, the more likely people are to think there is something wrong with the house. This is why most realtors want to price correctly, get the maximum showings, get the most offers and choose the best. Remember there are realtors that will take a listing for an inflated price just to get the listing and will work on bringing you down rapidly on price. Some of us will take the listing with automatic price reductions built in the contract knowing that the price is too high. The problem with this strategy is that your best shot at the market is coming in priced correctly. You want lots of interest and action. So how to decide? Look at the comps, what has sold and what is available. Look at your neighborhood, is it in demand? Are there many properties for sale?  Assess your need to move or sell. Consider the lower of the estimated sales prices. Look at the range of prices being suggested. Think about one that is in the middle of the range. Ask the realtor about their pricing strategy, the one that tried to price right and is eager to sell more than is eager to list is your best choice. Without action on your property, you are in the same boat as before you listed. We are no longer in a pure buyers’ market here in the greater NYC metro area. The market is making some sensible strides and prices are on an upswing. This does not mean that your property priced will over market will be a good idea. You can only sell for what someone is willing to pay. If you don’t sell at all, you have nothing, 

Mary Kingsley Headshot
Phone: 917-292-5378
Dated: April 8th 2014
Views: 5,015
About Mary: I have a long background in public service. I am a Registered Nurse with a BA and an MPS in Health C...

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